State: Record-breaking success generates over $70 million in tax revenue with nearly all directed to education; youth sports and problem gambling also benefiting
Gov. Kathy Hochul announced the successful launch of mobile sports wagering in New York state, with nearly $2 billion in wagers taken during the first 30 days of operation. Her team said, “This record-breaking success, more than any other state has ever reported, will generate more than $70 million in tax revenue for New York state, providing funds to be allocated toward programs that support education, youth sports, and more.”
Hochul said, "Over the past month, we've seen how mobile sports wagering can be an economic engine for New York, driving significant funding to our schools, youth sports, and so much more. As this new industry continues to grow, New York will make sure we have the resources and guidelines in place to make it a success for all."
Mobile sports wagering began in New York on January 8. Since then, more than $1.98 billion in wagers has been taken in New York. The total gross gaming revenue was over $138 million and, at a 51% tax rate for the state, these wagers brought more than $70.6 million in tax revenue. According to state law, tax revenue generated by the mobile sports wagering industry is required to go toward elementary and secondary education, grants for youth sports programming, property tax relief, and problem gambling prevention, treatment and recovery services.
Last year, Hochul directed the New York State Gaming Commission to prepare for the launch of mobile sports wagering, which had previously been authorized by the Legislature, by engaging licensed companies to complete the regulatory requirements needed to begin operations in New York. This approach, her team said, “will keep New York bettors in New York, rather than having state residents travel to neighboring states to wager.”
Gaming Commission Executive Director Robert Williams said, "With Gov. Hochul kicking off mobile sports wagering on Jan. 8, there is no doubt there is strong interest in online sports betting in the Empire State, which has just set a national record for monthly tax revenue."
OASAS Commissioner Chinazo Cunningham said, "OASAS is committed to ensuring that individuals and families in need of assistance for problem gambling have access to all available supports and resources in our state. The revenue from the launch of mobile sports gambling will provide much-needed financial support to problem gambling prevention, treatment and recovery services."
New York State Sen. Joseph Addabbo Jr. said, "When we brought mobile sports betting to New York, we had confidence it was going to be a success, but to be able to break the national record of total handle for sports betting in a single month, in our very first month, with primarily only six sportsbooks, is both rewarding and promising. Breaking this record proves that New York was ready for mobile sports betting, and we are providing our state with a new significant revenue, educational and addiction funding source. It also can give us an indication of where we go from here, building upon a solid foundation, especially with the Super Bowl and March Madness within our sights. The future is extremely bright for mobile sports betting in New York!"
Assembly member J. Gary Pretlow said, "With over $1 billion in sports betting handle in the first month, New York state is well on the way to being the sports betting capital of the world. I'm happy the Gaming Commission proceeded with haste to get the determination of the operators in place two weeks earlier than anticipated."
On Jan. 6, the commission authorized four platform providers and operators – Caesars, DraftKings, FanDuel and Rush Street Interactive – to commence operations effective Jan. 8. Since that time, three more operators have commenced operations: Bet MGM, Points Bet and Wynn Interactive. All major operators in the U.S. were included in the submitted bids, with eight platform providers and nine operators selected.
According to GeoComply, a software firm used by sports books to ensure geolocation requirements, more than 1.76 million unique player accounts were utilized for over 187 million transactions. Geolocation is performed on a continuous basis to ensure patrons are located within the boundaries of New York state when placing their wagers.
For fiscal year 2022, 98% of the state tax imposed on mobile sports wagering will fund education, 1% of the state tax will fund sports programs for underserved youth, and 1% of the state tax will fund problem gambling education and treatment. All of the license fees revenue is directed to education. The FY 2023 executive budget financial plan projects $249 million in revenue, which includes $200 million in already collected license fees in FY 2022, $357 million in FY 2023, $465 million in FY 2024, $493 million in FY 2025, $509 million in FY 2026 and $518 million in FY 2027. Effective FY 2023, $6 million will be directed to programs addressing problem gambling, $5 million will be directed to youth sports grant programs statewide, and the remaining amount will be directed to education.
Wagers included more than $600 million on football, over $540 million on basketball, and nearly $80 million on hockey. The figures from the Super Bowl will be included in the weekly mobile sports wagering reports, updated on Fridays, found here.
The commission implemented regulations requiring operators to prevent underage gaming, provide bettors the availability to impose spending limits, and provide information on the risks associated with gambling and signs of problem gambling. New Yorkers struggling with a gambling addiction, or who know someone who is, can find help by calling the state's toll-free, confidential HOPEline at 1-877-8-HOPENY (1-877-846-7369) or by texting HOPENY (467369).